|Bid||0.00 x 900|
|Ask||0.00 x 2900|
|Day's Range||30.14 - 31.14|
|52 Week Range||29.47 - 46.56|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.32|
|Expense Ratio (net)||0.43%|
Homebuilders stocks and the related exchange traded funds recently rallied, albeit modestly, off 2018 lows, but some market observers believe the group remains vulnerable to additional downside. The SPDR S&P Homebuilders ETF (XHB) , iShares U.S. Home Construction ETF (ITB) and Invesco Dynamic Building & Construction ETF (PKB) are still sporting significant year-to-date losses. “The XHB homebuilders ETF and ITB home construction ETF are both tracking for their worst years since 2008, the middle of a housing crisis that demolished the group,” reports CNBC.
Housing stocks are having a terrible year, weighed down by higher mortgage rates and raw-material costs. Because HVAC units typically last between 12 to 15 years, Baird analyst Tim Wojs sees strong demand for replacement-HVAC units over the next few years as units purchased during the height of the housing boom between 2003 and 2006 will soon need to be replaced. “We probably have a couple more years of strong replacement demand,” Wojs said.
Mortgage applications hit a near 4-year low lately as rising rate concerns are affecting the sector, putting homebuilder ETFs in focus.
Halloween may have passed, but home construction stocks continue to build a house of horrors: They’re down nearly 40%, on average, from their early-2018 highs. Of course, it’s understandable why home construction stocks’ weakness is so worrying, since the sector proved to be a good leading indicator of the 2008-09 Great Financial Crisis. A year prior to the 2007-09 bear market, for example, the iShares U.S. Home Construction ETF (ITB) , for example, had already fallen 25%.
Homebuilders stocks and sector-related ETFs led the charge on Tuesday as the homeownership rate in the U.S. gains momentum. Supporting the gains in the homebuilder sector, the Census Bureau revealed the homeownership rate was 64.4% in the third quarter, compared to 64.3% in the prior three months and 63.9% a year earlier, Bloomberg reports. The steady price gains in the housing sector over the past six years are starting to slow, potentially allowing more buyers to bid on houses without resorting to a pricey bidding war.
The housing market is one of the few sectors in the U.S. that isn't riding on the country???s growth as rising rates and housing prices are resulting in lower sales, putting housing ETFs in focus.
The housing market is clearly taking a turn for the worse, as sales of newly-constructed homes fell off a cliff in September.
The constant strain of the Sino-U.S. trade relationship brought Chinese stocks to their knees in 2018 – the latest wave of selling sending mainland Shanghai Composite Index to levels not seen since November 2014. Volatility-tied products are under pressure again as wild price swings have returned to the markets. U.S. homebuilders are going through rough times with disappointing numbers in building permits and housing starts. Rising funding costs are a major problem for indebted corporations, especially as U.S. companies’ debt load reached record levels of $6.3 trillion. Closing the list, FAANGs have a wall of worries to climb with Netflix hoping to lead the way up with surging revenue and subscriber adds. Check out our previous Trends edition at Major Stock Indices Feel The Pain of Multi-Year High Rates.
The yields on benchmark Treasury notes headed lower Wednesday as the Commerce Department reported weaker-than-expected new home sales, which dropped by 5.5% during September--its lowest level since 2016. "Anyone watching home builder stocks or watching the data all year should not be surprised but its's clear this important area of the US economy, highly sensitive to price and rates, has obviously slowed sharply," said Peter Boockvar, chief investment officer for the Bleakley Advisory Group. The new home sales data comes as housing starts also fell more than expected, sliding by 5.3% to a seasonally adjusted annual rate of 1.201 million units last month, according to the Commerce Department.
While some big blue chip stocks revealed lackluster results for the third quarter, homebuilders and home construction-related ETFs climbed on strong earnings and forward guidance. On Tuesday, the SPDR ...
This Week In The Economy It’s a relatively quiet week on the economic calendar but there are a few things to watch out for. On Wednesday, new home sales, home prices, and the 30-year mortgage rate. We’ve been seeing some early signs of an economic slowdown including a slowdown in housing sales. Ironically, the real […] The post Market Morning: Brexit Rebellion, GE Dividend Chopping Block, MbS Phones Khashoggi? appeared first on Market Exclusive.
Positive earnings from the likes of Bank of New York Mellon, BB&T and Danaher were overshadowed by rising yields in the early trading session on Thursday as benchmark Treasury yields rose across the board, causing the Dow Jones Industrial Average to fall by over 150 points. In part, Treasury note yields were partly to blame for last week’s stock sell-off as benchmark notes went on a weeklong ascent in the week prior, pushing to new highs that caused investors to fret. "The bottom line is that the long end of the US yield curve has managed to break out for the first time in several years and that other developed market yields have also been moving higher," said Michael Shaoul, chairman and CEO of Marketfield Asset Management.
Shares of home improvement retailers and homebuilders equities tumbled Wednesday after another analyst downgraded the sector, weighing on the related exchange traded funds in the process. Credit Suisse’s ...
Housing starts fell more than expected, sliding by 5.3% to a seasonally adjusted annual rate of 1.201 million units last month, according to the latest data from the Commerce Department. The fall nailed homebuilder ETFs like the iShares US Home Construction ETF (ITB) , SPDR S&P Homebuilders ETF (XHB) and the Invesco Dynamic Building & Construction ETF (PKB) . The drop in housing starts was also paired with August's data being revised down to show starts rising to a rate of 1.268 million units versus the previously reported 1.282 million units.
A measure of sentiment among residential construction firms rose slightly, reflecting solid macro fundamentals, but builders are still struggling to build homes for the more affordable segments of the market.
Against a sluggish backdrop, it is difficult to plan investments that could fetch sure-shot returns. As such, they should focus on certain techniques while building a portfolio.
Based on analytics tool Kensho, we have highlighted a few ETFs that have outshined and lagged when the 10-year Treasury note yield rose 25 basis points or more over a span of 30 days.
A rising rate landscape continues to rock the foundations of the real estate sector, particularly when it comes to homebuilders, which could benefit the Direxion Daily MSCI Real Est Bear 3X ETF (DRV) , but put persistent downward pressure on the Direxion Daily Homebuilders and Supplies Bull 3X Shares (NAIL) . With 30-year mortgage rates already surpassing the 5% mark, the cost to finance a home is getting more expensive, clamping down a housing market that has been lagging even as U.S. equities were in the midst of a historic bull run. Compounding the issue is the benchmark U.S. Treasury yield on the 10-year note reaching a new seven-year high.
Tom Lee, head of research and co-founder of Fundstrat Global Advisors, says homebuilders are a major buy. He joins Yahoo Finance's Julie Hyman and Adam Shapiro as well as Bullseye Brief author and publisher Adam Johnson to explain why.
Here's a sobering thought if you're looking to buy a new home: Mortgage payments are climbing twice as fast as home values. A new report from Zillow finds buyers today would have to spend about $1,400 more a year on their mortgages than they would have one year ago. Yahoo Finance's Seana Smith, Brian Sozzi, and Zack Guzman talk with Zillow President, Jeremy Wacksman.
Tight housing inventories and high prices have left some prospective buyers on the sidelines. Now, mortgage rates have reached their highest level since April of 2011. Michael Roberts of Roberts Capital Advisors discusses with Yahoo Finance's Seana Smith, Pras Subramanian and Dion Rabouin.